What is Global Trade Compliance?
In today’s global marketplace, companies do business both within and outside their home nation. Many supply chains depend on following various trade agreements, international trade regulations, and tariff classifications. Large companies often have a trade compliance team or trade compliance manager in place to make sure the business adheres to these rules.
Yet, even with these specialties, many companies unintentionally receive import and export violations. These violations can lead to hefty penalties and fines for failure with trade compliance functions. This is why many businesses employ the services of a trade compliance partner, such as TecEx.
For TecEx, Global Trade Compliance for us means making sure that all of these regulation barriers are correctly passed, ensuring that we get our client’s products through these compliance measures in a timely manner. As a Global Trade Compliance partner for our clients, TecEx takes on all of the risk and responsibility, ensuring peace of mind for businesses using our services.
Global trade compliance is all about managing risk. We make sure that all the correct details are provided for things such as licensing, paperwork and valuation of products being imported or exported into or from a country. Not abiding by a country’s specific trade compliance rules could result in a shipment being stuck for weeks or months, costing time and money.
Why is Global Trade Compliance Important?
Global Trade Compliance is incredibly important for both the business importing or exporting products, and for countries accepting or distributing these products. Having something potentially dangerous or against compliance regulations being exported to another country could cause serious problems. It could also potentially damage the reputation of the business exporting it, the business importing it and the two countries for allowing it to happen.
Importance of Global Trade Compliance
Proper Trade Compliance Protects Your Business
By not abiding to global trade compliance laws, both companies and individuals can face hefty monetary fines, seized shipments and even jail time for repeat offences. Companies can also be debarred in certain countries for refusing to follow global trade compliance laws. This strips the company of the right to ship or receive any products from a foreign country.
Correct and effective trade compliance ensures that goods are correctly classified, and everything necessary is declared in accordance to the laws of each specific country.
Strict Trade Compliance Protects Countries
By enforcing an effective trade compliance program, both companies and countries can protect themselves from a number of threats, including potentially harmful new vendors. By ensuring that new customers apply for licenses to import and export goods, countries can ensure that all compliance laws are met, and will secure themselves from any potentially harmful imports or exports.
Global Trade Compliance Protects National Security
Countries have the right to protect critical products, technology and information from falling into the wrong hands. For example, protecting certain items from going to other countries and individuals who wish to do those countries harm. It is also important for some countries to safeguard competitive advantages in an ever-growing global marketplace.